Strategies to close the living income gap of smallholder farmers

The impact of public and private interventions aimed at increasing the income of smallholder in many agricultural commodities has been insufficient. Today, farmers clearly do not earn a decent standard of living. In recognition of this fact, a debate on living income has appeared on the agenda of leaders in public and private spheres. A living income is the net household income sufficient to enable all members of the household to afford a decent standard of living, including food, housing, healthcare, education, transport, communication, recreation and a buffer for emergencies and unexpected events. To support closing the gap between actual incomes and the income needed for a decent living, this paper provides guidance on which strategies can be implemented to improve smallholder farm incomes. It looks at two particular cases: the cocoa sector in Côte d’Ivoire and the natural rubber sector in the Kapuas Hulu district in Indonesia.